Compliance Costs May Cost Consumers: Print Preview
New regulations that aim to benefit consumers have become such a burden for credit unions that the cost of compliance may hamper growth and bring changes in the products, services and convenience consumers want the most.
Tim Rowe, chief lending officer for the $560 million Member One FCU, said new regulations have made it more difficult for the Roanoke, Va.-based credit union to serve its members. While Member One has not had to directly cut any programs or services, Rowe said time spent researching and implementing processes to meet new regulations have come at the expense of loan production.
Klewin, who has taught sessions at CUNA’s Regulatory Compliance School for the past few years, said he’s noticed attendees have grown beyond the usual internal auditors, compliance specialists and senior managers seeking division-specific compliance training.
“I’m a firm believer that one person has to have compliance accountability…and organizationally, that person has to have influence,” he said. “Often times, it’s a buried position.”